How To Become A Contracts Manager: What It Is and Career Path - Zippia (2024)

Updated June 25, 2024

6 min read

How To Become A Contracts Manager: What It Is and Career Path - Zippia (1)

A contracts manager oversees the creation and maintenance of contracts between a company and its clients or vendors. They ensure that all parties involved meet their obligations and follow the terms of the agreements. Contracts managers also negotiate and draft new contracts, review legal documents, and manage contract databases. They collaborate with departments such as legal and finance to make sure contracts are legally binding and financially sound. Overall, a contracts manager handles a company's contractual relationships.

How long does it takes to become a contracts manager?

It typically takes 4-8 years to become a contracts manager:

  • Years 1-4: Obtaining a Bachelor's degree in a relevant field, such as business, law, or finance.
  • Years 5-6: Accumulating the necessary work experience in duties such as contract negotiation, administration, and management.
  • Years 7-8: Completing on-site and on-the-job training for further development of skills and knowledge in contracts management.

ScoreContracts ManagerUS Average

Salary

5.7

Avg. Salary $72,691

Avg. Salary $59,228

Stability Level

8.1

Growth Rate -6%

Growth Rate 0.3%

Diversity

3.1

Race

American Indian and Alaska Native 0.30%

Asian 7.41%

Black or African American 9.02%

Hispanic or Latino 12.21%

Unknown 3.82%

White 67.23%

Gender

female 45.96%

male 54.04%

Age - 47

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 47

Stress Level

8.1

Stress level is high

7.1 - high

Complexity Level

8.7

Complexity Level is advanced

7 - challenging

Work Life Balance

3.4

Work Life balance is poor

6.4 - fair

What are the pros and cons of being a Contracts Manager?

Pros

  • Opportunity for career growth and development

  • Opportunity to develop strong analytical and research skills

  • Ability to work on complex and challenging projects

  • Chance to work in multidisciplinary teams

  • Flexibility to work in different locations/industries

Cons

  • High level of responsibility and accountability

  • High-stress environment due to tight deadlines

  • Chance of having little control over the terms of the contracts

  • Risk of legal disputes and conflicts

  • Possibility of being required to travel frequently

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Contracts Manager career paths

A contracts manager can grow into various positions. Many move into project management roles, overseeing projects from start to finish. Others become purchasing managers, responsible for buying the right materials at the right price. Some can even move into director roles, overseeing entire departments.

Key steps to become a contracts manager

  1. Explore contracts manager education requirements

    The educational requirements for a contracts manager are typically a bachelor's degree. According to a study, 75% of contracts managers hold a bachelor's degree. The most common majors for this role are business, law, accounting, political science, and management. Some contracts managers also pursue certifications such as Certified Professional contracts manager, Certified Federal contracts manager, Project Management Professional, Certified Manager Certification, and Certified Purchasing Manager. Top schools for contracts management include Stanford University, University of Pennsylvania, Northwestern University, Maine Maritime Academy, and University of Southern California.

    Most common contracts manager degrees

    Bachelor's

    62.5

    %

    Master's

    14.9

    %

    Associate

    11.3

    %

  2. Start to develop specific contracts manager skills

    A contracts manager must have strong analytical skills, be able to manage multiple projects simultaneously, and possess excellent interpersonal and team management skills. They are responsible for reviewing contracts, identifying potential problems, and providing contract risk assessment. They must also coordinate with government agencies to audit company compliance and monitor adherence to corporate conflict of interest policy. This role requires the ability to negotiate contracts, manage relationships with vendors and service providers, and ensure that all contracts comply with company policies and regulatory requirements.

    SkillsPercentages
    Contract Management9.25%
    Contract Administration5.53%
    Contract Terms5.20%
    Project Management4.57%
    Customer Service4.28%

    Show more

  3. Complete relevant contracts manager training and internships

    Accountants spend an average of 3-6 months on post-employment, on-the-job training. New contracts managers learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as a contracts manager based on U.S. Bureau of Labor Statistics data and data from real contracts manager resumes.

  4. Research contracts manager duties and responsibilities

    A contracts manager's responsibilities vary widely. They manage litigation, review contract performance, prepare reports for senior management, and coordinate with HR representatives and business managers. They also maintain excellent organizational and analytical skills, hold signature authority, and ensure compliance with established company guidelines. They prepare ITAR registrations, provide interpretations of contracts, and conduct financial analysis. They also interface with government agencies, monitor adherence to corporate conflict of interest policy, and coordinate internal and external efforts in contract administration.

    • Manage ISO requirements for sales and marketing.
    • Manage IDIQ contracts including task and delivery orders.
    • Manage RFI's and change orders through close out.
    • Manage all material for a non MRP driven program manually.
  5. Prepare your contracts manager resume

    When your background is strong enough, you can start writing your contracts manager resume.

    You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a contracts manager resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

    Choose From 10+ Customizable Contracts Manager Resume templates

    Build a professional

    Contracts Manager

    resume in minutes. Browse through our resume examples to identify the best way to word your resume.

    Then choose from 10+ resume templates to create your Contracts Manager resume.

    How To Become A Contracts Manager: What It Is and Career Path - Zippia (2)

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    How To Become A Contracts Manager: What It Is and Career Path - Zippia (16)

    How To Become A Contracts Manager: What It Is and Career Path - Zippia (17)

  6. Apply for contracts manager jobs

    Now it's time to start searching for a contracts manager job. Consider the tips below for a successful job search:

    1. Browse job boards for relevant postings
    2. Consult your professional network
    3. Reach out to companies you're interested in working for directly
    4. Watch out for job scams

How Did You Land Your First Contracts Manager Job

How To Become A Contracts Manager: What It Is and Career Path - Zippia (18)

Are you a Contracts Manager?

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Average contracts manager salary

The average Contracts Manager salary in the United States is $72,691 per year or $35 per hour. Contracts manager salaries range between $45,000 and $116,000 per year.

Average

Contracts Manager

Salary

$72,691Yearly

$34.95

hourly

More contracts manager salary info

What Am I Worth?

How To Become A Contracts Manager: What It Is and Career Path - Zippia (19)

How do contracts managers rate their job?

Contracts Manager FAQs

Have more questions?

See all answers to common executive management questions.

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Updated June 25, 2024

How To Become A Contracts Manager: What It Is and Career Path - Zippia (20)

Zippia Team

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

Contracts Manager Related Careers

  • Contracts Administration Manager
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  • Contracts Director
  • Director Of Materials Management
  • Director Of Purchasing
  • Director, Procurement
  • Inventory/Purchasing Manager
  • Manager
  • Material Manager
  • Materials Director
  • Procurement Officer
  • Production And Inventory Control Manager
  • Purchasing Manager
  • Purchasing Project Manager

Contracts Manager Related Jobs

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  • Contracts Manager

Updated June 25, 2024

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How To Become A Contracts Manager: What It Is and Career Path - Zippia (2024)

FAQs

How To Become A Contracts Manager: What It Is and Career Path - Zippia? ›

Contract managers are encouraged to pursue certifications such as Certified Commercial Contracts Manager (CCCM) or Certified Professional Contracts Manager (CPCM). Specializing in areas like technology contracts, outsourcing agreements, or regulatory compliance can also open doors to niche roles and advanced positions.

What is the career path for a contract manager? ›

Contract managers are encouraged to pursue certifications such as Certified Commercial Contracts Manager (CCCM) or Certified Professional Contracts Manager (CPCM). Specializing in areas like technology contracts, outsourcing agreements, or regulatory compliance can also open doors to niche roles and advanced positions.

What is the best qualification for a contract manager? ›

Bachelors degree with business emphasis or other degree plus 24 semester hours of business-related courses and less than 3 years general business or contract-related experience is typical.

How do I get started in contract management? ›

Begin by gaining relevant qualifications, like certifications in contract management or courses in related areas such as law or business administration. Volunteering for contract-related responsibilities in your current job or seeking internships can provide practical experience.

Is contract manager a stressful job? ›

Contract management can be stressful due to the high level of responsibility, tight deadlines, and the need to manage complex agreements and relationships.

Is a contracts manager higher than a project manager? ›

In any Engineering and Construction project, the roles of both the project manager and the contracts manager are crucial. While the project manager focuses on overseeing the actual construction process, the contracts manager plays a pivotal role in managing the legal and financial aspects of the project.

What is the career path of a manager? ›

Following entry-level, there are several Manager career path levels to advance into. It can take 2 years as an entry-level Manager to progress to the senior manager position. Each advanced Manager position requires approximately 2 years of experience at each level to advance in your Manager career path.

What is a day in the life of a contract manager? ›

A Day in the Life of a Contract Manager

They're checking for upcoming renewals and imminent deadlines, and lining up their priorities. Team huddles: They're off to meetings with internal stakeholders to talk about contract requirements. They might also be found negotiating contract terms with external partners.

What is the best contract management course? ›

Top Contract Manager Certifications
  • Certified Procurement Professional (CPP) ...
  • Project Management Professional (PMP) ...
  • Master Certificate in Contract Management. ...
  • Federal Acquisition Certification in Contracting (FAC-C) ...
  • Chartered Institute of Procurement & Supply (CIPS) Certification. ...
  • Certified Supply Chain Professional (CSCP)

What is another title for a contract manager? ›

Similar Job Titles to a Contract Manager

For example, some employers may refer to a Contract Manager as either a Contract Specialist or a Contract Administrator.

What are the six-six stages of contract management? ›

The Six Key Stages of Contract Lifecycle Management
  • Stage 1: Contract Initiation. ...
  • Stage 2: Contract Creation and Negotiation. ...
  • Stage 3: Contract Approval. ...
  • Stage 4: Contract Execution. ...
  • Stage 5: Contract Monitoring and Management. ...
  • Stage 6: Contract Renewal or Termination. ...
  • Conclusion and takeaways.
Mar 7, 2024

Why become a contract manager? ›

Contract management develops several key business skills.

The nature of contract management provides professionals several opportunities to develop skills in project management, budgeting, risk management, accounting, financial modeling, and business law.

How can I be a better contract manager? ›

Each skill is vital for effectively managing the contract lifecycle, mitigating risks, and ensuring successful outcomes for all involved parties.
  1. Collaboration. ...
  2. Depth of Business Knowledge. ...
  3. Technology and Innovation. ...
  4. Pulse on Your Agreements. ...
  5. Communication and Project Management. ...
  6. Negotiation. ...
  7. Attention to Detail.
Aug 7, 2024

How long does it take to become a contract manager? ›

According to the National Contract Management Association (NCMA), entry-level contract management positions require a bachelor's degree, as well as two to five years of working experience.

What type of manager pays the most? ›

Top 10 Best Paying Management Jobs & Careers 2024
  1. Chief Executive Officer. ...
  2. General and Operations Manager. ...
  3. Information Systems Manager. ...
  4. Marketing Manager. ...
  5. Information Systems Manager. ...
  6. Financial Manager. ...
  7. Engineering Manager. ...
  8. Sales Manager.

What are the duties of a contract manager? ›

Here are some of their typical duties and responsibilities: Create, analyze, negotiate, and execute an array of contracts for various transactions. Build and maintain relationships with vendors, clients, and other business connections. Maintain contract-related documents and correspondence.

Is contract management a good career? ›

When you combine these skill areas with a need to oversee teams, interface with company managers and in many cases, gain significant knowledge of relevant laws and regulations, you may find that this is a career option that offers impressive reward for those with flexibility in areas of expertise.

What are the levels of contract management? ›

The Contract Management career path functions at three distinct levels: entry-level, mid-level and senior level. Here, we introduce these three levels in order to provide a glimpse into what a typical CM career entails for interested students.

What is the career progression of a contract specialist? ›

Contracts Specialist career paths

A contracts specialist can move into a contracts administrator role. They can also become an office manager or account manager. Some specialists move into project management, while others take on senior account manager roles.

References

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